If a Put and Call Cost the Same, How Can

question 68

Multiple Choice

If a put and call cost the same, how can an investor offset the cost of a buying a call?

• A) Borrowing money
• B) Sell a put
• C) Sell a stock
• D) Wait for the stock price to rise

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Definitions:

Confederate Capital

The city designated as the administrative and political center of the Confederate States of America during the American Civil War; initially Montgomery, Alabama, before moving to Richmond, Virginia.

Richmond

The capital city of the Commonwealth of Virginia in the United States, known for its rich history, particularly during the Civil War as the capital of the Confederacy.

Win the War

A phrase commonly used to encourage and emphasize the objective of achieving victory in a wartime scenario.

Daily Newspaper

A publication that contains news, information, and advertising, issued every day or weekdays.